In our report on Astral (Sep. 19, 2009 - $32.37), we suggested that a rise above around $34 would confirm the breakout from the large inverse head-and-shoulder formation and signal the start of a new major up-leg. Astral Media rallied to $34.50 (A) soon thereafter, pulled back to $31 ( near the 40-week moving average - B) and then reached a high of $36.65 to confirm the breakout and higher targets (C). Only a decline below around $33.50 would reverse the positive status of this stock.
Point & Figure measurements provide targets of $44 and $49 (23-per-cent and 37-per-cent appreciation potentials from current levels). The large inverse head-and-shoulder pattern supports higher targets.
Ron Meisels is a contributor to the www.NA-marketletter.com web site. Monica Rizk is the senior Technical Analyst for Phases & Cycles Inc. They may hold shares in companies profiled. Please see the site for a glossary.